VMBS vs. SMBS
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Schwab Mortgage-Backed Securities ETF (SMBS).
VMBS and SMBS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VMBS is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Nov 19, 2009. SMBS is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US MBS Float Adjusted Total Return Index. It was launched on Nov 18, 2024. Both VMBS and SMBS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
VMBS vs. SMBS - Performance Comparison
Loading graphics...
VMBS vs. SMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 0.41% | 8.36% | -0.02% |
SMBS Schwab Mortgage-Backed Securities ETF | 0.36% | 8.15% | -0.07% |
Returns By Period
In the year-to-date period, VMBS achieves a 0.41% return, which is significantly higher than SMBS's 0.36% return.
VMBS
- 1D
- 0.21%
- 1M
- -1.57%
- YTD
- 0.41%
- 6M
- 2.06%
- 1Y
- 5.79%
- 3Y*
- 4.29%
- 5Y*
- 0.49%
- 10Y*
- 1.41%
SMBS
- 1D
- 0.20%
- 1M
- -1.67%
- YTD
- 0.36%
- 6M
- 1.92%
- 1Y
- 5.33%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VMBS vs. SMBS - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is higher than SMBS's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Return for Risk
VMBS vs. SMBS — Risk / Return Rank
VMBS
SMBS
VMBS vs. SMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Schwab Mortgage-Backed Securities ETF (SMBS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| VMBS | SMBS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.16 | 1.12 | +0.04 |
Sortino ratioReturn per unit of downside risk | 1.67 | 1.61 | +0.06 |
Omega ratioGain probability vs. loss probability | 1.21 | 1.20 | +0.01 |
Calmar ratioReturn relative to maximum drawdown | 1.95 | 1.94 | +0.01 |
Martin ratioReturn relative to average drawdown | 6.10 | 5.61 | +0.50 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading graphics...
Sharpe Ratios by Period
| VMBS | SMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.16 | 1.12 | +0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.26 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 1.27 | -0.81 |
Correlation
The correlation between VMBS and SMBS is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
VMBS vs. SMBS - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.23%, less than SMBS's 4.80% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.23% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
SMBS Schwab Mortgage-Backed Securities ETF | 4.80% | 4.83% | 0.50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VMBS vs. SMBS - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for VMBS and SMBS.
Loading graphics...
Drawdown Indicators
| VMBS | SMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -3.20% | -14.27% |
Max Drawdown (1Y)Largest decline over 1 year | -3.00% | -2.83% | -0.17% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | — | — |
Current DrawdownCurrent decline from peak | -1.57% | -1.67% | +0.10% |
Average DrawdownAverage peak-to-trough decline | -2.51% | -0.77% | -1.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 0.98% | -0.02% |
Volatility
VMBS vs. SMBS - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) and Schwab Mortgage-Backed Securities ETF (SMBS) have volatilities of 1.90% and 1.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading graphics...
Volatility by Period
| VMBS | SMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.90% | 1.82% | +0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 2.89% | 2.75% | +0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.00% | 4.77% | +0.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.71% | 4.92% | +1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.37% | 4.92% | +0.45% |